Morning Brew: Nvidia's Price Target Boosts and JD.com's Strong Earnings

GuruFocus
14 Nov 2024

S&P 500, Nasdaq 100, and Dow futures are showing gains. Investors remain optimistic post-election, but some are holding back on buying.

U.S. Treasury yields are stable today. The 10-year yield is at 4.45%, and the 2-year yield is at 4.28%.

Today, the market will get new information on inflation with the October Producer Price Index released at 8:30 ET. Weekly jobless claims will also be announced at the same time.

Today's News

Nvidia (NVDA, Financial) is gaining attention as various Wall Street analysts have raised their price targets ahead of its fiscal third-quarter results. HSBC's Frank Lee set a high target of $200, citing potential growth in the data center sector, while Oppenheimer's Rick Schafer increased his target to $175, anticipating positive results driven by AI advancements and the Blackwell ramp-up.

JD.com (JD, Financial) reported impressive Q3 earnings, with non-GAAP EPADS of $1.24 surpassing estimates by $0.20, and revenue of $37.1 billion beating expectations by $1.02 billion. The company's strong performance comes amid discussions on potential tariff impacts under a Trump presidency, presenting a complex outlook.

The Biden administration plans to modify the Medicare Star Ratings System, reducing the emphasis on call center scores. This decision follows lawsuits from UnitedHealthcare (UNH, Financial) and Centene (CNC, Financial) against the Centers for Medicare & Medicaid Services over the ratings' impact on their 2025 scores.

Intuitive Machines (LUNR, Financial) reported a Q3 net loss of $80.41 million but exceeded revenue expectations with $58.48 million. The company narrowed its 2024 revenue outlook and anticipates backlog growth from upcoming contracts, maintaining a stable cash position.

Realty Income (O, Financial) was downgraded by Mizuho Securities due to concerns about growth in a prolonged high-interest rate environment. The REIT's AFFO growth is expected to lag behind peers, leading to a Neutral rating despite its current valuation.

ASML Holding (ASML, Financial) reaffirmed its long-term financial targets, projecting significant revenue growth driven by strong semiconductor demand. The company expects to maintain its previous guidance, highlighting the role of semiconductors in advancing AI technologies.

Cisco Systems (CSCO, Financial) saw a slight dip in stock after mixed Q1 results. Despite a modest beat and raised fiscal 2025 growth outlook, unchanged AI guidance overshadowed potential benefits from expanding AI networking opportunities.

Zeta Global (ZETA, Financial) faced a downgrade from KeyBanc Capital Markets following a short report. Despite announcing a $100M stock buyback, the stock's fundamentals are overshadowed by mounting short theses, prompting a move to Sector Weight.

Amazon (AMZN, Financial) launched 'Amazon Haul' to compete with low-cost apps like Temu and Shein. This new section in its app offers items priced $20 and under, aiming to attract budget-conscious shoppers with a unique shopping experience backed by Amazon's A-to-z Guarantee.

Super Micro Computer (SMCI, Financial) continued to decline after delaying its 10-Q filing, citing the need for a new accounting firm. Concerns over financial health and compliance with Nasdaq's listing rules have contributed to ongoing stock pressure.

Merck (MRK) secured rights to a cancer drug from LaNova Medicines in a deal worth up to $3.3 billion. The agreement involves a PD-1/VEGF bispecific antibody currently in Phase 1 trials, marking a significant investment in cancer treatment innovation.

GuruFocus Stock Analysis

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  • Rivian shares jumps 16% as Volkswagen Boosts Investment in Expanded EV Partnership by Nauman khan
  • Einhorn Boosts Inflation Bets, Citing Trump's Economic Policies by Faizan Farooque

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